Brownsville Sales and Use Tax

Brownsville's Rate

Sales in Brownsville are taxed at 8.25 percent: 6.25 percent for the state and 2 percent for the city, of which a quarter cent funds the Brownsville Community Improvement Corporation. Cameron County does not add a sales tax inside the city. BOMCAS handles sales tax for Brownsville businesses remotely.

Statewide permits and taxable services are on the Texas sales and use tax page. Here we look at exports, construction and hotels in Brownsville.

Shoppers From Matamoros

Many shoppers cross the bridges to buy clothing, electronics and household goods. A sale to a Mexican resident is taxable unless the goods are exported and the store can prove it. When the store delivers the goods to Mexico, its shipping and customs documents are the proof. When the shopper carries the goods across, the usual proof is an export certification issued through the Comptroller's system by a licensed customs broker. Stores that skip tax without that proof can be assessed in an audit.

Customs Brokers

Customs brokers licensed by the Comptroller issue export certifications. They must inspect the goods, follow the rules on fees and keep records. Brownsville brokers also handle commercial shipments through the bridges and the port.

Construction at the Port and Beyond

Building the LNG plant and other industrial facilities is new construction of non-residential property. Under a lump-sum contract, the contractor pays tax on materials and does not collect tax from the owner. Under a separated contract, the contractor collects tax on the materials portion. Repair and remodelling of existing non-residential property is taxable. Contractors need to know which kind of contract they have before buying materials.

Shipyards and Vessels

Shipyards building and repairing vessels and rigs may be able to use specific exemptions that apply to certain ships and offshore equipment. These require the right certificates and documentation, and taxable supplies used by the yard itself remain taxable.

Hurricane Repairs

After storms, repairs to homes are generally not taxable as residential repair, though materials sold separately are. Repairs to stores, offices and warehouses are taxable services. Restoration contractors working on both should separate jobs by property type.

Restaurants and Panaderías

Restaurants collect tax on prepared food, including tacos and plates to go. Panaderías selling pan dulce and other bakery items without plates or utensils do not collect tax on them. Grocery items are exempt, while soft drinks and candy are taxable.

Shrimp and Seafood

Raw shrimp and fish sold as grocery food are exempt. Fried or cooked seafood sold ready to eat is taxable. Boat owners should keep invoices for nets, engines and supplies in case an auditor asks how purchases were taxed.

Launch Visitors and Tours

Launches at Boca Chica bring visitors who book tours, boat trips and viewing events. Admission to tours and events run for entertainment is generally a taxable amusement service, while transport alone is not. Operators that sell packages should separate the parts.

Hotel Tax

Hotel stays in Brownsville carry 7 percent city hotel tax and 6 percent state hotel tax. Visitors for launches, construction crews and business travellers keep hotels busy. Extended-stay rooms rented for 30 consecutive days or more are not subject to hotel tax, but the stay must be documented.

Our Help

Permits and returns.
Export documentation.
Construction contract classification.
Exemption certificates.
Hotel tax for extended stays.
Audits and refunds.